Nedbank exercises option to buy 20% of Ecobank for $500M as Qatar National Bank builds stake

Nedbank Group Ltd. (NED), the South African lender controlled by Old Mutual Plc, has agreed to buy 20 percent of Ecobank Transnational Inc. (ETI), even after the Lome, Togo-based company sold a stake to a Qatari bank.

Nedbank will pay $493.4 million for 4.51 billion shares, the Johannesburg-based lender said today in a joint statement with Ecobank. Nedbank had a right to convert a $285 million loan made to Ecobank in 2011 into an estimated 11 percent stake. A second subscription right allowed it to increase its holding in Ecobank to as much as 20 percent, with a Nov. 25 deadline to exercise the option.

Read more: Nedbank Buys 20% of Ecobank as Qatari Lender Builds Stake – Bloomberg.